Max finds that a listed house is in a neighborhood previously affected by underground gas leaks. Assuming he has not met the seller, what should he do regarding disclosure?

Max finds that a listed house is in a neighborhood previously affected by underground gas leaks. Assuming he has not met the seller, what should he do regarding disclosure?

• A. Tell the seller first
• B. Withhold information about contamination
• C. Disclose to the listing broker only
• D. Alert the buyer to the contamination but make no statement about the seller's anxiety

Answer: (D)

The main idea is that licensees must disclose known material facts about a property or its surroundings that could affect safety, value, or desirability. Here, learning that the neighborhood has a history of underground gas leaks means there’s a known environmental risk that the buyer should be aware of. Because Max hasn’t met the seller, the appropriate step is to communicate this information directly to the buyer so they can evaluate health, safety, and potential remediation needs, rather than withholding it or limiting disclosure to someone else. It’s not about the seller’s feelings; it’s about presenting factual, known facts that could affect the buyer’s decision.

The main idea is that licensees must disclose known material facts about a property or its surroundings that could affect safety, value, or desirability. Here, learning that the neighborhood has a history of underground gas leaks means there’s a known environmental risk that the buyer should be aware of. Because Max hasn’t met the seller, the appropriate step is to communicate this information directly to the buyer so they can evaluate health, safety, and potential remediation needs, rather than withholding it or limiting disclosure to someone else. It’s not about the seller’s feelings; it’s about presenting factual, known facts that could affect the buyer’s decision.